You should carefully consider whether KuCoin Leveraged Tokens is suitable for you in light of your tolerance to risks, your investment objectives, your investment experience, your financial circumstances, your financial needs, your personal circumstances, etc.
In considering whether to trade or invest, you should inform yourself and be aware of the risks generally, and in particular should note the following:
A. KuCoin Leveraged Tokens Is A Risky Investment
Leveraged Tokens investment (trade) is a risky one. Compared with derivatives and leveraged tokens issued and managed by other institutions, KuCoin Leveraged Tokens bears lower risks and costs, however, it does not mean that it has no risks. By trading KuCoin Leveraged Tokens or using related services of KuCoin Leverage Tokens, you are deemed to have fully understood the risks of KuCoin Leveraged Tokens and agreed to assume all responsibilities of all and related trading or non-trading behaviours involved in your KuCoin account. Please do not trade or invest any products that are beyond your financial abilities.
B. KuCoin Leveraged Tokens Is Not A Long-Term Investment
If you want to invest or hold the leveraged tokens for the long term, you shall bear your own risks involved in your investment or trading behaviours caused by inherent market risks, fees, slippage, rebalancing algorithm and others. Please be noted that in extreme cases, the value of your KuCoin Leveraged Tokens might become zero (0) and cannot be recovered.
C. KuCoin Will Only Rebalance Its Leveraged Tokens When Needed
To ensure the fixed leverage of KuCoin Leveraged Tokens, KuCoin will adjust the portfolio of it on a regular basis. Details are as follows:
i. Regular Rebalancing: To ensure the fixed leverage, KuCoin will carry out regular rebalancing to its leveraged tokens at a certain time each day.
ii. Irregular Rebalancing: To ensure the fixed leverage, KuCoin will rebalance the leveraged tokens when the volatility of their underlying assets exceeds the threshold intraday.
D. Commissions, Fees and Charges Associated With KuCoin Leveraged Tokens
In considering whether to trade or invest, you should inform yourself and be aware of the commissions, fees and charges generally, these will affect your expected returns.
ii. Subscription Fees: Subscription fees are charged when users subscribe tokens. Currently, the fee rate is 0.1% per subscription.
iii. Redemption Fees: Redemption fees are charged when users redeem tokens. Currently, the fee rate is 0.1% per redemption.
iv. Management Fees: Management fees are charged at the rate of 0.045% by 23:45 (UTC) every day. The fee will be incorporated into the net asset value of the Leveraged Tokens.
KuCoin reserves all rights to modify or change the fees mentioned above at any time and its sole discretion. Any updates of fees will be applied to any trades once the updates take place. By trading and investing KuCoin Leveraged Tokens, you are deemed to authorize KuCoin to deduct any amount from your account for any applicable fees owed by you.
E. Risks of Liquidity and Pricing Associated With KuCoin Leveraged Tokens
Since KuCoin Leveraged Tokens are centrally created and have their liquidity, to ensure they are within a proper price range, KuCoin will therefore provide adequate market liquidity. To minimize the risks mentioned above, KuCoin shall take proper steps that include but are not limited to capital injection, creation of additional tokens and tokens selling in the secondary market. KuCoin will process the subscription and redemption requests at 07:45, 15:45, and 23:45 （UTC）each day. Prices of subscription/redemption are determined by the results of execution, thus there are uncertainties over time and price. Please be prudent of your trading decisions.